Edward Jones axes longtime research boss

Edward Jones has fired Alan Skrainka, the general partner in charge of market research, who had been with the firm since 1982.

In an internal communication to its financial advisers May 21, Jones said that he was fired “due to conduct concerning the use of written materials without proper attribution,” according to an anonymous source familiar with the move. It is unclear which research produced by Mr. Skrainka led to his firing.

Jones spokesman John Boul, however, confirmed that Mr. Skrainka was fired for failing to provide proper attribution for material. Mr. Boul was unsure about the last time that a partner at the firm had been fired.

Mr. Skrainka, who appeared regularly on CNBC and other business television networks, couldn’t be reached for comment. His temporary replacement is Kate Warne, whose title is acting market strategist.

Mr. Skrainka isn’t the only recent departure from Jones, which is known for the loyalty of its advisers and employees. Michael Sharples, a 17-year Jones veteran representative based in Durham, N.C., resigned and joined LPL Financial on May 10.

“I was excited to get the opportunity to have a real independent advisory business,” Mr. Sharples said, adding that he wanted to start his own firm.

He declined to say how much in fees and commissions he made while at Jones, but said that he was in the top 3%, making him a top producer with the firm.

One source, who asked not to be identified, said that Mr. Sharples produced about $750,000 in fees and commissions.

Mr. Boul declined to comment about Mr. Sharples’ production numbers.

Meanwhile, the firm is in the middle of updating its five-year plan, which includes a section titled “brutal facts.” Mr. Boul said that the “warts and all” examination is being conducted to determine if and how the firm needs to change.

He declined to comment about whether Jones has made specific decisions, saying that the information is proprietary.

The self-examination “is a tremendously positive opportunity to gather ideas, input and insight from a very broad group of extremely talented associates,” James Weddle, the firm’s managing partner, wrote in an e-mail.

“We regret that [Mr. Sharples] left the firm,” Mr. Weddle said. “He had taken over the branch office of a veteran financial adviser who joined firm management.”

Recently, two advisers who each produced more than $1.1 million in fees and commissions left Jones for wirehouses, causing some in the industry to question the firm’s ability to hang on to top-producing brokers. Mr. Weddle noted that the annualized attrition rate at the firm is 2.8%.

Jones has 12,600 reps and advisers.

E-mail Bruce Kelly at [email protected].